We started combined deliveries in procuring and distributing between parts/materials suppliers and factories in April 1998.

Combined delivery means to circulate/collect parts and materials by truck, for assembly at base factories and then delivery to each individual factory. In the past, parts were transported separately to each factory from each manufacturer.

We have also partly introduced a modal shift* in transportation from base factories to each individual factory to reduce CO2 emissions.

Due to these activities, we reduced our vehicle fleet by 56.9% in FY-2005, compared to the year before starting combined delivery (FY-1997), and also cut 43.7% of CO2 emissions in shipping.

* Modal shift: A shift in cargo shipping to rail and marine transport, which has less environmental impact.

Daiwa Logistics Co., Ltd., which handles Daiwa House Group's logistics, has been pursuing "Eco-Drive" efforts for vehicles that transport building materials from factories to building sites since July 2003. Eco-Drive is a driving policy to reduce environmental impact and improve safety and economic efficiency. In FY-2005, we improved the average fuel consumption of transit vehicles at every factory by 15.7% compared to FY 2002. Also in concern for drivers so that they can concentrate on Eco-Drive, we installed air conditioners in vehicles that work when not idling. Furthermore, we aggressively introduce environmentally friendly "idling stop system vehicles" when purchasing new vehicles.